Pivot Points Breakout Indicator - Forex Pivot Support and Resistance Levels

Forex Pivot Support and Resistance Indicator Levels is a set of indicators used to determine potential turning points or potential forex breakout points, also known as "forex pivots" or forex pivot point. These Forex Pivot Support and Resistance Levels are calculated to determine points which the forex trend could change from a "bullish" to "bearish trend or from a "bearish" to "bullish trend." Forex traders use these Forex Pivot Support and Resistance Levels as zones of support and resistance.

These Forex Pivot Support and Resistance Levels are calculated as the average of the high, low and close from the previous session:

Forex Pivot Point = (High + Low + Close) / 3

Day forex traders use the calculated forex pivot support and resistance levels to determine levels of entry, stop loss level and profit taking level, by trying to determine where the majority of forex traders may be doing the same thing.

A forex pivot point is a forex price level of significant forex technical analysis that is used by traders as a predictive or leading indicator of forex price movement. Forex Pivot Support and Resistance Indicator is calculated as an average of significant forex prices (high, low and close forex price) from the market prior trading period. If the forex prices in the following trading period trade above the central forex pivot point it is interpreted as a bullish forex trend, whereas if forex price trade below the central forex pivot point is interpreted as bearish.

The central forex pivot point is used to calculate additional levels of support and resistance, below and above central forex pivot point - by either subtracting or adding price differentials calculated from previous day trading ranges.

A forex pivot-point & the forex pivot support and resistance levels are often turning points for the direction of forex price movement.

• In an upward forex trend, the forex pivot point indicator & the forex pivot resistance levels - represent a ceiling level for the forex price - if forex price goes above this level the upward trend is no longer sustainable and a forex trend reversal is likely to happen.

• In a downwards forex trend, the forex pivot-point & the forex pivot support levels may represent a low for forex price level or a resistance to further forex price decline.

The central FX pivot can then be used to calculate the support & resistance areas as follows:

Forex Pivot Support and Resistance Indicator Levels consist of a central forex pivot point level surrounded by three support levels below it and three resistance levels above it. Forex Pivot Support and Resistance Levels provide a quick method for traders to get a general idea of how the market will be moving during the course of the day by using a few simple calculations based on the previous forex price close - Previous Day Close Breakout Forex Strategy and Market Open Trading Strategies.

Forex Pivot Support and Resistance Indicator Levels is considered as a leading forex technical indicator rather than a lagging indicator. All that is required to calculate the forex pivot support and resistance levels for the current day is the previous day high, low, and close prices. The 24-hour cycle forex pivot support and resistance levels in this indicator are calculated according to the following formulas:

The central FX pivot can then be used to calculate the support & resistance areas as follows:

Resistance 3

Resistance 2

Resistance 1

Forex Pivot Point

Support 1

Support 2

Support 3

Pivot Points Breakout Indicator - Forex Pivot Support and Resistance Levels - Forex Pivot Support and Resistance Indicator Levels